FCPA Needs Fine Tuning, Says Former AG

Use of the Foreign Corrupt Practices Act to level the playing field among domestic companies doing business abroad has led to complaints that the statute places U.S. companies at a disadvantage with respect to their foreign competitors.

The FCPA gives prosecutors tremendous discretion in defining its scope, and thus tremendous leverage in charging decisions. Corporations are averse to being investigated, especially for FCPA violations , and as a result these cases often settle. But, according to the author, a former U.S. Attorney General, the more that American companies elect to settle and not force the DOJ to defend its aggressive interpretation of the Act, the more aggressive the DOJ has become in its prosecution decisions.